eSpeed Reports Second Quarter 2006 Results; Company Updates Outlook for Full Year 2006

eSpeed, Inc. (NASDAQ: ESPD), a leading developer ofelectronic marketplaces and related trading technology for the globalcapital markets, today reported results for the second quarter endedJune 30, 2006.

Second Quarter 2006 Earnings

eSpeed reported a net loss of $0.4 million, or $0.01 per dilutedshare, for the second quarter of 2006 based on Generally AcceptedAccounting Principles (GAAP). To reflect earnings generated from theCompany's operations, eSpeed also reported non-GAAP net operatingincome of $1.8 million, or $0.04 per diluted share. The differencebetween non-GAAP net operating income and the GAAP net loss for thequarter occurred primarily due to $2.0 million in expenses relating tothe relocation of the Company's London office and $0.5 million inpatent litigation costs, partially offset by a positive settlement ofa tax-related matter of $0.3 million. All of these differences werenet of tax.

For comparative purposes, eSpeed reported a GAAP net loss of $1.5million, or $0.03 per diluted share, for the second quarter of 2005.For the same period, the Company reported non-GAAP net operatingincome of $1.9 million, or $0.04 per diluted share. The differencebetween non-GAAP net operating income and the GAAP net loss for thesecond quarter 2005 was $2.6 million in MTS-related expenses, $0.6million for patent litigation costs, and a non-cash charge of lessthan $0.1 million related to business partner securities, all net oftax.

Second Quarter 2006 Revenues

eSpeed's total GAAP and non-GAAP operating revenues for the secondquarter of 2006 were $39.0 million. The Company reported GAAP andnon-GAAP total revenues of $37.5 million for the second quarter of2005.

Fully electronic revenues were $17.3 million in the second quarterof 2006 compared to $18.8 million for the second quarter of 2005.Revenues from Software Solutions in the second quarter of 2006 were$11.5 million versus $10.4 million in the year ago period. Voiceassisted and screen assisted revenues totaled $8.1 million in thesecond quarter of 2006 compared with $6.8 million in the secondquarter of 2005. Non-GAAP pre-tax operating margin was 7.3 percent inthe second quarter of 2006.

See "Non-GAAP Financial Measures" below for a detailed descriptionof the Company's non-GAAP financial measures.

Second Quarter 2006 Volume and Transactions on the eSpeed System

Fully electronic volume on the eSpeed system, excluding newproducts, was $10.2 trillion for the second quarter of 2006, up 43.9percent from $7.1 trillion in the second quarter of 2005. eSpeed'svoice-assisted volume for the second quarter of 2006 was $8.6trillion, an increase of 16.4 percent over the $7.4 trillion reportedin the second quarter of 2005.

Fully electronic volume on the eSpeed system for new products,which the Company defines as foreign exchange, interest rate swaps,futures and repos, was $744 billion for the second quarter of 2006, up47.0 percent against the $506 billion reported in the second quarterof 2005.

Cash Flow & Cash

eSpeed generated cash flow from operations of $4.3 million duringthe second quarter of 2006, compared with $8.6 million during thecomparable period in 2005. The Company also reports free cash flow,which it defines as cash from operations less net cash used ininvesting activities, including capital expenditures. eSpeed's freecash flow was $0.8 million for the second quarter of 2006 and $0.2million in the year-earlier period. Excluding related partyreceivables and payables, free cash flow for the second quarter of2006 was $6.1 million compared with $4.1 million in the year-agoquarter. As of June 30, 2006, eSpeed's cash and cash equivalents wereapproximately $178.2 million.

Outlook

For the third quarter of 2006, eSpeed expects to generate non-GAAPoperating revenues in excess of $38 million and expects non-GAAP netoperating income to be in the range of $0.02 to $0.03 per dilutedshare.

For full year 2006, eSpeed now expects to generate non-GAAPoperating revenues in excess of $154 million, up from the previousoutlook of $152 million. The Company now expects non-GAAP operatingexpenses to be towards the lower end of its previously stated range of$144 million to $147 million. eSpeed currently expects full year 2006non-GAAP net operating income to be in the range of $0.10 to $0.12 perdiluted share, which is an increase from the prior range of $0.07 to$0.10 per diluted share.

The Company will host a conference call on Thursday, August 3,2006 at 8:30 a.m EDT, to discuss the above results. To listen to thecall via audio webcast, please visit www.espeed.com. Please note:listeners must have a Real Media or Windows Media plug in andheadphones or speakers to listen to the webcast.

Non-GAAP Financial Measures

To supplement eSpeed's consolidated financial statements presentedin accordance with GAAP and to better reflect the Company'squarter-over-quarter and comparative year-over-year operatingperformance, eSpeed uses non-GAAP financial measures of revenues, netincome and earnings per share, which are adjusted to exclude certainexpenses and gains. In addition, the Company provides a computation offree cash flow. These non-GAAP financial measurements do not replacethe presentation of eSpeed's GAAP financial results but are providedto improve overall understanding of the Company's current financialperformance and its prospects for the future. Specifically, eSpeedbelieves the non-GAAP financial results provide useful information toboth management and investors regarding certain additional financialand business trends relating to the Company's financial condition andresults from operations. In addition, eSpeed's management uses thesemeasures for reviewing the Company's financial results and evaluatingeSpeed's financial performance. For the second quarter of 2006, thedifference between GAAP net income and non-GAAP net operating incomewas $2.2 million, net of tax. eSpeed considers "non-GAAP net operatingincome" to be after-tax income generated from the Company's continuingoperations excluding certain non-recurring or non-core items such as,but not limited to, asset impairments, litigation judgments, costs orsettlements, restructuring charges, costs related to potentialacquisitions, charitable contributions, insurance proceeds, businesspartner securities, gains or losses on investments and similar events.The amortization of patent costs and associated licensing fees(including those made in settlement of litigation) from such patentsare generally treated as operating items. Material judgments orsettlement amounts paid or received and impairments to all or aportion of such assets are generally treated as non-operating items.Management does not provide guidance of GAAP net income becausecertain items identified as excluded from non-GAAP net operatingincome are difficult to forecast.

About eSpeed, Inc.

eSpeed, Inc. (NASDAQ: ESPD) is a leader in developing anddeploying electronic marketplaces and related trading technology thatoffers traders access to the most liquid, efficient and neutralfinancial markets in the world. eSpeed operates multiple buyer,multiple seller real-time electronic marketplaces for the globalcapital markets, including the world's largest government bond marketsand other fixed income and foreign exchange marketplaces. eSpeed'ssuite of marketplace tools provides end-to-end transaction solutionsfor the purchase and sale of financial products over eSpeed's globalprivate network or via the Internet. eSpeed's neutral platform,reliable network, straight-through processing and superior productsmake it the trusted source for electronic trading at the world'slargest fixed income and foreign exchange trading firms and majorexchanges. To learn more, please visit www.espeed.com.

Discussion of Forward-Looking Statements by eSpeed, Inc.

The information in this press release contains forward-lookingstatements within the meaning of Section 27A of the Securities Act of1933, as amended, and Section 21E of the Securities Exchange Act of1934, as amended. Such statements are based upon current expectationsthat involve risks and uncertainties. Any statements contained hereinthat are not statements of historical fact may be deemed to beforward-looking statements. Our actual results and the timing ofcertain events may differ significantly from the results discussed inthe forward-looking statements. Factors that might cause or contributeto such a discrepancy include, but are not limited to, ourrelationship with Cantor Fitzgerald and its affiliates, the costs andexpenses of developing, maintaining and protecting our intellectualproperty, including judgments or settlements paid or received andtheir related costs, the possibility of future losses and negativecash flow from operations, the effect of market conditions, includingtrading volume and volatility, our pricing strategy and that of ourcompetitors, our ability to develop new products and services, toenter new markets, to secure and maintain market share, to enter intomarketing and strategic alliances, to hire new personnel, to expandthe use of our electronic system, to induce clients to use ourmarketplaces and services and to effectively manage any growth weachieve, the effects of the attacks on the World Trade Center onSeptember 11, 2001, and other factors that are discussed under "RiskFactors" in eSpeed's Annual Report on Form 10-K filed with theSecurities and Exchange Commission. We believe that allforward-looking statements are based upon reasonable assumptions whenmade; however, we caution that it is impossible to predict actualresults or outcomes or the effects of risks, uncertainties or otherfactors on anticipated results or outcomes and that, accordingly, youshould not place undue reliance on these statements. Forward-lookingstatements speak only as of the date when made, and we undertake noobligation to update these statements in light of subsequent events ordevelopments. Actual results and outcomes may differ materially fromanticipated results or outcomes discussed in forward-lookingstatements.
eSpeed, Inc and Subsidiaries
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except share and per share data)

June 30, December
2006 31, 2005
----------- ---------
(Unaudited)

Assets
Cash and cash equivalents $37,495 $37,070
Reverse repurchase agreements with related
parties 140,666 141,365
----------- ---------
Total cash and cash equivalents 178,161 178,435
Fixed assets, net 56,412 58,291
Investments 7,787 7,742
Goodwill 12,184 12,184
Other intangibles, net 9,820 11,356
Receivables from related parties 8,627 4,345
Other assets 15,831 8,581
----------- ---------
Total assets $288,822 $280,934
=========== =========

Liabilities and Stockholders' Equity

Current liabilities:
Payables to related parties 4,099 7,588
Accounts payable and accrued liabilities 26,619 19,649
----------- ---------
Total current liabilities 30,718 27,237

Deferred income 7,384 7,593
----------- ---------
Total liabilities 38,102 34,830
----------- ---------

Commitments and contingencies - -

Stockholders' Equity:
Class A common stock, par value $.01 per share;
200,000,000 shares
authorized; 35,541,521 and 34,387,380 shares
issued at June 30, 2006
and December 31, 2005, respectively 355 343
Class B common stock, par value $.01 per share;
100,000,000 shares
authorized; 21,139,270 and 22,139,270 shares
issued and outstanding at June 30, 2006 211 221
and December 31, 2005, respectively, convertible
to Class A common stock
Additional paid-in capital 298,274 294,987
Unearned stock-based compensation (763) (1,592)
Treasury stock, at cost; 6,449,991 and 6,488,047
shares of Class A common stock
at June 30, 2006 and December 31, 2005,
respectively (62,132) (62,486)
Retained earnings 14,775 14,631

----------- ---------
Total stockholders' equity 250,720 246,104
----------- ---------

Total liabilities and stockholders' equity $288,822 $280,934
=========== =========


eSpeed, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME IN ACCORDANCE WITH GAAP (unaudited)
(in thousands, except per share data)

Three Months Six Months Ended
Ended
----------------- -----------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
-------- -------- -------- --------
Revenues:
Transaction revenues
Fully electronic
transactions with
related parties $15,704 $18,804 $31,385 $39,241
Fully electronic
transactions with
unrelated parties 1,601 - 2,639 -
-------- -------- -------- --------
Total fully
electronic
transactions 17,305 18,804 34,024 39,241
Voice-assisted brokerage
transactions with
related parties 6,648 6,444 13,903 12,938
Screen-assisted open
outcry transactions with
related parties 1,438 403 2,864 810
-------- -------- -------- --------
Total transaction revenues 25,391 25,651 50,791 52,989
-------- -------- -------- --------
Software Solutions fees from
related parties 7,897 6,657 15,388 12,761
Software Solutions and
licensing fees from unrelated
parties 3,572 3,765 7,371 7,942
Insurance recovery - - 3,500 -
Interest income 2,093 1,382 4,455 2,667
-------- -------- -------- --------
Total revenues 38,953 37,455 81,505 76,359
-------- -------- -------- --------

Expenses:
Compensation and employee
benefits 12,372 12,890 26,230 25,941
Amortization of software
development costs and other
intangibles 5,627 4,504 12,517 9,170
Other occupancy and equipment 11,646 7,536 20,279 14,945
Professional and consulting
fees 2,225 2,129 4,135 5,070
Communications and client
networks 2,000 1,882 4,027 3,638
Marketing 265 369 597 862
Administrative fees to related
parties 3,670 3,422 7,097 7,299
Amortization of business
partner and non-employee
securities - 143 19 260
Acquisition related costs - 4,124 - 4,124
Other expenses 1,915 2,863 3,960 5,354
-------- -------- -------- --------
Total operating expenses 39,720 39,862 78,861 76,663
-------- -------- -------- --------

-------- -------- -------- --------
(Loss) income before income taxes (767) (2,407) 2,644 (304)
-------- -------- -------- --------

Income tax (benefit) provision (391) (949) 1,000 (185)

-------- -------- -------- --------
Net (loss) income $(376) $(1,458) $1,644 $(119)
======== ======== ======== ========

Per share data:


Basic (loss) earnings per
share $(0.01) $(0.03) $0.03 $(0.00)
======== ======== ======== ========


Diluted (loss) earnings per
share $(0.01) $(0.03) $0.03 $(0.00)
======== ======== ======== ========


Basic weighted average shares
of common stock outstanding 50,142 51,281 50,207 52,205
======== ======== ======== ========

Diluted weighted average
shares of common stock
outstanding 50,142 51,281 51,150 52,205
======== ======== ======== ========


NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(in thousands, except per share data)

Three Months Six Months Ended
Ended
----------------- -----------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
-------- -------- -------- --------
Revenues:
Transaction revenues
Fully electronic
transactions with
related parties $15,704 $18,804 $31,385 $39,241
Fully electronic
transactions with
unrelated parties 1,601 - 2,639 -
-------- -------- -------- --------
Total fully
electronic
transactions 17,305 18,804 34,024 39,241
Voice-assisted
brokerage transactions
with related parties 6,648 6,444 13,903 12,938
Screen-assisted open
outcry transactions
with related parties 1,438 403 2,864 810
-------- -------- -------- --------
Total transaction revenues 25,391 25,651 50,791 52,989
-------- -------- -------- --------
Software Solutions fees from
related parties 7,897 6,657 15,388 12,761
Software Solutions and
licensing fees from
unrelated parties 3,572 3,765 7,371 7,942
Interest income 2,093 1,382 4,056 2,667
-------- -------- -------- --------
Total non-GAAP revenues 38,953 37,455 77,606 76,359
-------- -------- -------- --------

Expenses:
Compensation and employee
benefits 12,797 12,890 26,431 25,941
Amortization of software
development costs and other
intangibles 5,627 4,504 11,354 9,170
Other occupancy and equipment 8,383 7,536 16,372 14,945
Professional and consulting
fees 1,435 1,093 2,598 2,052
Communications and client
networks 2,000 1,882 4,027 3,638
Marketing 265 369 597 862
Administrative fees to
related parties 3,670 3,422 7,097 7,299
Other expenses 1,915 2,863 3,961 5,354
-------- -------- -------- --------
Total non-GAAP
operating expenses 36,092 34,559 72,437 69,261
-------- -------- -------- --------

-------- -------- -------- --------
Non-GAAP income before income
taxes 2,861 2,896 5,169 7,098
-------- -------- -------- --------

Non-GAAP income tax provision 1,015 1,026 1,956 2,552

-------- -------- -------- --------
Non-GAAP net operating income 1,846 1,870 3,213 4,546
======== ======== ======== ========

Non-operating (loss) income:
Amortization of business
partner and non-employee
securities, net of tax - (92) (11) (166)
Litigation costs, net of tax (513) (638) (955) (1,901)
Acquisition related costs,
net of tax - (2,598) - (2,598)
Accelerated depreciation, net
of tax - - (689) -
Office relocation cost, net
of tax (1,978) - (2,360) -
Tax settlement, net of tax 269 - 373 -
Insurance recovery, net of
tax - - 2,073 -
-------- -------- -------- --------
Total non-operating
loss (2,222) (3,328) (1,569) (4,665)
-------- -------- -------- --------

Net (loss) income $(376) $(1,458) $1,644 $(119)
======== ======== ======== ========

Per share data:

Basic non-GAAP income before
income taxes per share $0.06 $0.06 $0.10 $0.14

Basic non-GAAP tax provision
per share $0.02 $0.02 $0.04 $0.05
-------- -------- -------- --------

Basic non-GAAP net operating
income per share $0.04 $0.04 $0.06 $0.09

Basic non-operating (loss)
income per share $(0.05) $(0.07) $(0.03) $(0.09)
-------- -------- -------- --------

Basic GAAP (loss) earnings
per share $(0.01) $(0.03) $0.03 $(0.00)
======== ======== ======== ========
Diluted non-GAAP income
before income taxes per
share $0.06 $0.06 $0.10 $0.14

Diluted non-GAAP tax
provision per share $0.02 $0.02 $0.04 $0.05
-------- -------- -------- --------

Diluted non-GAAP net
operating income per share $0.04 $0.04 $0.06 $0.09

Diluted non-operating (loss)
income per share $(0.05) $(0.07) $(0.03) $(0.09)
-------- -------- -------- --------

Diluted GAAP (loss) earnings
per share $(0.01) $(0.03) $0.03 $(0.00)
======== ======== ======== ========
Basic weighted average shares
of common stock outstanding 50,142 51,281 50,207 52,205
======== ======== ======== ========

Diluted weighted average
shares of common stock
outstanding 50,142 51,281 51,150 52,205
======== ======== ======== ========

Additional data:

Non-GAAP pre-tax operating
margin 7.3% 7.7% 6.7% 9.3%
======== ======== ======== ========


eSpeed, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in thousands)


Three Months Ended Six Months Ended
------------------- -------------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
--------- --------- --------- ---------
Cash flows from operating
activities:
Net (loss) income $(376) $(1,458) $1,644 $(119)
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization 9,008 7,072 18,853 14,170
Gain on insurance
recovery from
related parties - - (3,500) -
Equity in net
(income) loss of
unconsolidated
investments (23) (6) (45) 15
Deferred income
tax expense (1,707) (566) (602) (443)
Stock-based
compensation 509 679 1,082 1,332
Tax benefit from
employee stock
option exercises 24 46 93 84
Excess tax
benefits from
stock based-comp 8 - (39) -
Issuance of
securities under
employee benefit
plan - 63 - 125

Changes in operating assets
and liabilities:
Receivable from
related parties (4,068) (6,060) (4,676) (4,430)
Other assets (4,119) 525 (7,230) (498)
Payable to
related parties (1,225) 2,154 (3,489) (2,667)
Accounts payable
and accrued
expenses 6,380 6,207 7,479 2,324
Deferred income (105) (105) (209) (209)
--------- --------- --------- ---------
Net cash provided
by operating
activities 4,306 8,551 9,361 9,684
--------- --------- --------- ---------

Cash flows from investing
activities:
Insurance
proceeds from
related parties 3,500 - 3,500 -
Purchase of fixed
assets (2,563) (3,853) (4,668) (7,466)
Capitalization of
software
development
costs (4,115) (3,944) (8,300) (9,523)
Capitalization of
patents and
related defense
costs (334) (591) (575) (1,099)
--------- --------- --------- ---------
Net cash used in
investing
activities (3,512) (8,388) (10,043) (18,088)
--------- --------- --------- ---------

Cash flows from financing
activities:
Purchase of Class
A common stock - (7,827) - (19,437)
Proceeds from
exercises of
stock options and
warrants 128 208 369 312
Excess tax
benefits from
stock based-comp (8) - 39 -
Receivable from
broker on stock
option exercises - (49) - -
--------- --------- --------- ---------
Net cash provided
by (used in)
financing
activities 120 (7,668) 408 (19,125)
--------- --------- --------- ---------

Net increase (decrease) in
cash and cash equivalents 914 (7,505) (274) (27,529)
--------- --------- --------- ---------

Cash and cash equivalents at
beginning of period 12,195 12,960 37,070 19,884
Reverse repurchase agreements
with related parties at
beginning of period 165,052 176,704 141,365 189,804
--------- --------- --------- ---------
Total cash and cash
equivalents at beginning of
period 177,247 189,664 178,435 209,688
--------- --------- --------- ---------

Cash and cash equivalents at
end of period 37,495 20,567 37,495 20,567
Reverse repurchase agreements
with related parties at end of
period 140,666 161,592 140,666 161,592
--------- --------- --------- ---------
Total cash and cash
equivalents at end of period $178,161 $182,159 $178,161 $182,159
========= ========= ========= =========

Supplemental cash information:
Cash paid for income taxes $99 $- $99 $21
Dividend distribution to
Cantor - - 1,500 -
Contribution of license from
Cantor - - 1,500 -
Conversion of Class B common
stock to Class A common stock - - 10 -


eSpeed, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS OF FREE CASH FLOWS (unaudited)
(in thousands)

Three Months Six Months Ended
Ended
--------------- -----------------
June June June 30, June 30,
30, 30, 2006 2005
2006 2005
------- ------- -------- --------

Non-GAAP income before income taxes $2,861 $2,896 $5,169 $7,098

Depreciation and amortization 9,008 7,072 18,853 14,170
Other non-cash and non-operating
items (3,134) (4,566) (1,527) (5,929)
------- ------- -------- --------
Non-GAAP income before income taxes
adjusted for depreciation,
amortization and other 8,735 5,402 22,495 15,339
------- ------- -------- --------


Income tax (provision) benefit on
non-GAAP operating income (1,015) (1,026) (1,956) (2,552)
Income tax benefit (provision) on
non-operating income (loss) 1,406 1,976 956 2,738
Deferred income tax expense (1,707) (566) (602) (443)
Tax benefit from stock option
exercises 24 46 93 84
Income taxes paid 99 - 99 21
------- ------- -------- --------
(Increase) decrease in current
income tax payable (1,193) 430 (1,410) (152)

Changes in related party receivable
and payable, net (5,293) (3,907) (11,665) (7,098)
Changes in other operating assets
and liabilities, net 2,057 6,626 (59) 1,595
------- ------- -------- --------
Net cash provided by operating
activities 4,306 8,551 9,361 9,684
------- ------- -------- --------

Insurance proceeds from related
parties 3,500 - 3,500 -
Purchases of fixed assets (2,563) (3,853) (4,668) (7,466)
Capitalization of software
development costs (4,115) (3,944) (8,300) (9,523)
Capitalization of patents and
related defense costs (334) (591) (575) (1,099)
------- ------- -------- --------
Free cash flows 794 163 (682) (8,404)
------- ------- -------- --------

Related party receivable and
payable, net 5,293 3,907 11,665 7,098
------- ------- -------- --------
Free cash flows, net of related
party activity $6,087 $4,070 $10,983 $(1,306)
======= ======= ======== ========



eSpeed, Inc. and Subsidiaries
RECONCILIATION of NON-GAAP FINANCIAL MEASURES TO GAAP (unaudited)
(in thousands)

Three Months Six Months Ended
Ended
----------------- -----------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
-------- -------- -------- --------

Total non-GAAP revenues $38,953 $37,455 $77,606 $76,359
Insurance proceeds (a) - - 3,500 -
Tax settlement (b) - - 399 -
-------- -------- -------- --------
Total GAAP revenues $38,953 $37,455 $81,505 $76,359
-------- -------- -------- --------

Total non-GAAP operating expenses $36,092 $34,559 $72,437 $69,261
Amortization of business partner
and non-employee securities (c) - 143 19 260
Litigation costs (d) 790 1,036 1,537 3,018
Tax settlement (e) (425) - (201) -
Accelerated amortization (f) - - 1,162 -
Office relocation costs (g) 3,263 - 3,907 -
Acquisition related costs (h) - 4,124 - 4,124
-------- -------- -------- --------
Total GAAP operating expenses $39,720 $39,862 $78,861 $76,663
-------- -------- -------- --------

Non-GAAP income before income
taxes $2,861 $2,896 $5,169 $7,098
Sum of reconciling items = (a) +
(b) - (c) - (d) - (e) - (f) - (g)
- (h) (3,628) (5,303) (2,525) (7,402)
-------- -------- -------- --------
GAAP (loss) income before income
taxes $(767) $(2,407) $2,644 $(304)
-------- -------- -------- --------

Non-GAAP income tax provision $1,015 $1,026 $1,956 $2,552
Income tax expense on non-
operating income (i) (1,406) (1,975) (956) (2,737)
-------- -------- -------- --------
GAAP income tax provision $(391) $(949) $1,000 $(185)
-------- -------- -------- --------

Non-GAAP net operating income $1,846 $1,870 $3,213 $4,546
Sum of reconciling items = (a) +
(b) - (c) - (d) - (e) - (f) - (g)
- (h) - (i) (2,222) (3,328) (1,569) (4,665)
-------- -------- -------- --------
GAAP net (loss) income $(376) $(1,458) $1,644 $(119)
-------- -------- -------- --------


eSpeed, Inc. and Subsidiaries
Quarterly Market Activity Report

The following table provides certain volume and transaction count
information on the eSpeed system for the periods indicated.

------------ ------------ ------------
2Q05 3Q05 4Q05
------------ ------------ ------------
Volume (in billions)
-------------------------------
Fully Electronic Volume -
Excluding New Products 7,111 8,014 7,500
Fully Electronic Volume - New
Products* 506 376 540
Voice-Assisted Volume 7,401 8,576 7,608
------------ ------------ ------------
Total Electronic Volume 15,018 16,966 15,648
============ ============ ============

Electronic Transaction Count
-------------------------------
Fully Electronic Transactions -
Excluding New Products 1,304,403 1,642,579 1,640,167
Fully Electronic Transactions -
New Products* 91,408 115,483 111,801
Voice-Assisted Transactions 215,229 224,291 193,742
------------ ------------ ------------
Total Transactions 1,611,040 1,982,353 1,945,710
============ ============ ============

------------ ------------ ------------
eSpeed Equities Direct Access
(Number of Shares Traded In
Millions) 178 154 147
============ ============ ============

Trading Days 64 64 61

* New Products defined as Foreign Exchange, Interest Rate Swaps, Repos
and Futures. CBOT Futures volume calculated based on per contract
notional value of $200,000 for the two year contract and $100,000 for
all others.

Global Interest Rate Futures
Volume (1)
CBOT - US Treasury Contracts 120,086,840 109,470,625 101,854,952
CME - Euro $ Contracts 117,034,054 105,199,005 97,306,869
EUREX - Bund Contracts 80,150,635 66,780,116 68,817,862

Fed UST Primary Dealer Volume
(in billions) (2)
UST Volume 36,749 34,554 32,820
Average Daily UST Volume 574 540 538


NYSE - Volume (shares traded)
- in millions (3) 100,439 98,074 105,879
Transaction Value - in
millions 3,456,359 3,513,352 3,738,882

NASDAQ - Volume (shares
traded) - in millions (4) 112,473 104,927 110,647
Transaction Value - in
millions 2,467,331 2,353,027 2,584,578




% Change % Change
------------ ------------ --------- ---------
1Q06 2Q06 2Q06 vs 2Q06 vs
1Q06 2Q05
------------ ------------
Volume (in billions)
------------------------
Fully Electronic Volume
- Excluding New
Products 8,957 10,235 14.3% 43.9%
Fully Electronic Volume
- New Products* 524 744 42.0% 47.0%
Voice-Assisted Volume 8,093 8,618 6.5% 16.4%
------------ ------------ --------- ---------
Total Electronic
Volume 17,574 19,597 11.5% 30.5%
============ ============ ========= =========

Electronic Transaction
Count
------------------------
Fully Electronic
Transactions -
Excluding New Products 1,971,347 2,035,458 3.3% 56.0%
Fully Electronic
Transactions - New
Products* 131,700 138,421 5.1% 51.4%
Voice-Assisted
Transactions 228,124 202,600 (11.2%) (5.9%)
------------ ------------ --------- ---------
Total Transactions 2,331,171 2,376,479 1.9% 47.5%
============ ============ ========= =========

------------ ------------ --------- ---------
eSpeed Equities Direct
Access (Number of
Shares Traded In
Millions) 203 171 (15.7%) (4.0%)
============ ============ ========= =========

Trading Days 62 63

* New Products defined as Foreign Exchange, Interest Rate Swaps, Repos
and Futures. CBOT Futures volume calculated based on per contract
notional value of $200,000 for the two year contract and $100,000 for
all others.

Global Interest Rate
Futures Volume (1)
CBOT - US Treasury
Contracts 127,606,543 128,443,758 0.7% 7.0%
CME - Euro $ Contracts 117,284,097 127,350,219 8.6% 8.8%
EUREX - Bund Contracts 85,217,459 88,078,646 3.4% 9.9%

Fed UST Primary Dealer
Volume (in billions)
(2)
UST Volume 34,810 33,688 (3.2%) (8.3%)
Average Daily UST
Volume 561 535 (4.8%) (6.9%)


NYSE - Volume (shares
traded) - in millions
(3) 108,447 121,582 12.1% 21.1%
Transaction Value - in
millions 4,072,426 4,627,787 13.6% 33.9%

NASDAQ - Volume (shares
traded) - in millions
(4) 128,566 134,155 4.3% 19.3%
Transaction Value - in
millions 3,070,980 3,031,230 (1.3%) 22.9%



Sources:(1) Futures Industry Association - Monthly Volume Report -
(www.cbot.com, www.cme.com, www.eurexchange.com)
(2) www.ny.frb.org/pihome/statistics/dealer - Federal Reserve
Bank
(3) NYSE - www.nyse.com
(4) Nasdaq - www.marketdata.nasdaq.com


Fiscal Year 2005 Jan'05 Feb'05 Mar'05 Apr'05 May'05 Jun'05

Volume Data (in
billions)
Fully Electronic 2,027 2,229 2,565 2,524 2,499 2,595
Voice 1,550 1,628 1,548 1,922 2,116 3,363
Total 3,577 3,857 4,113 4,445 4,614 5,959

Transaction
Count
Fully
Electronic 341,336 362,482 422,970 440,972 452,148 502,691
Voice 64,431 59,901 64,797 64,006 67,051 84,172
Total 405,767 422,383 487,767 504,978 519,199 586,863

Trading Days 20 19 22 21 21 22
---------------- -------- -------- -------- -------- -------- --------

---------------- -------- -------- -------- -------- -------- --------
Fiscal Year 2006 Jan'06 Feb'06 Mar'06 Apr'06 May'06 Jun'06

Volume Data (in
billions)
Fully Electronic 2,994 2,923 3,564 3,320 3,870 3,789
Voice 2,545 2,502 3,046 2,415 3,254 2,949
Total 5,539 5,425 6,609 5,735 7,124 6,738

Transaction
Count
Fully
Electronic 672,749 643,969 786,329 685,273 782,203 706,403
Voice 76,852 70,844 80,428 59,405 73,679 69,516
Total 749,601 714,813 866,757 744,678 855,882 775,919

Trading Days 20 19 23 19 22 22
---------------- -------- -------- -------- -------- -------- --------



Trading Days
-------------------------------
2006
-------------------------------
Q1 Q2 Q3 Q4
------- ------- ------- -------
62 63 63 62

2005
-------------------------------
Q1 Q2 Q3 Q4
------- ------- ------- -------
61 64 64 61